Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Geneva Finance Announces Its One for Four Rights Issue

Media Release 23 November 2012


Geneva Finance Announces Its One for Four Rights Issue Settles in Full

NZAX-listed auto loan provider GFNZ Group Ltd (Geneva) having successfully placed $1.2m of ordinary shares to Federal Pacific Group Limited (FedPac) in March 2012, advises that its 1:4 rights issue, raising a further $1.5million of equity has settled.

This equity placement, further strengthens Geneva’s balance sheet and represents another milestone in the company’s development, which over the last four years, has seen Geneva work hard to reposition and rebuild its operations. Other significant milestones include:

• Repayment of more than $133.3m of debt funding to investors (including interest of 11.0% per annum to public debenture holders);
• Reduced group operating costs, since November 07, by more than $29m per annum;
• Acquisition of the Quest Insurance and Stellar debt collection operations to complement core financing activities;
• Implementation of online internet-based scorecards and loan application systems for introducers;
• Restructure of its operations to allow the new business model to focus on a market segment that offers attractive yields that carry considerably less risk.

Geneva Managing Director David O’Connell says:

“The $1.2m placement in March 2012, and the $1.5m raised under this issue have collectively increased Geneva’s net shareholders funds by 28%. This is another significant step forward. It will assist the company source the new funding lines, core to expanding the new business model while maintaining our scheduled debt repayment program.”

Under the rights issue Geneva has issued a further 56.2 million ordinary shares, of which 357 small shareholders were allocated 6.6m on the 19th November. FedPac were allocated the remaining 49.6m shares today, raising it’s total stake in Geneva to 33.7%.

Each of the shareholders (including FedPac) who acquired shares under the rights issue, has also been allocated two options (for every three shares acquired) to subscribe for new shares, at 8.00 cents per share within a 30 day period commencing three years after their allocation date.

The rights issue and FedPac’s underwrite agreement were approved at the shareholders meeting held on 6th November 2012.

ends

About Geneva
Geneva is a New Zealand-owned finance company that provides finance and financial services to the consumer credit and small to medium business markets. Geneva commenced business on 7 October 2002. Geneva's loans are originated through three distribution channels (Direct, Broker and Dealer), processed by the central sales desk then administered through a national operations centre located at Mt Wellington, Auckland.
The company borrows money by the issue of debenture stock. It also has a banking facility with BOS International (Australia) Limited.
Geneva (GFL) is listed on the NZAX. Following the rights issue, there are 280,872,249 issued shares held by 2,629 investors.

About Federal Pacific

FedPac’s operations throughout the Pacific region include investments in Banking, Personal and Business Finance, Money Transfer and Foreign Exchange Trading. The company was incorporated in 1993 and is based in Auckland, New Zealand.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Auckland Outage: Power Mostly Restored Overnight

Vector wishes to advise that all but 324 customers have been restored overnight. These customers are spread throughout the network in small pockets. The main St Johns feeder was restored around midnight allowing most of the customers in all affected areas to have power this morning. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news